Airport development
Master plan
Allan Nõmmik
14.11.2012
Master plan
• Developing the physical facilities of an airport
• Developing land and adjacent to the airport
• Determining the environmental effects of
airport construction and operations
• Establishing access requirements
• Establishing the technical, economic and
financial feasibility of proposed developments
through investigation of alternative concepts
Master plan
1. Vision, goals, and objectives
• The Master Plan vision helps guide the planning process and
serves as a basis for the Master Plan goals and objectives.
• The Master Plan Goals will drive development alternatives
and serve as the ultimate criteria for the selection of the
preferred development option and other major decisions
throughout the Master Plan process.
• The Master Plan objectives represent policy and planning
guidelines for identifying and evaluating the development
alternatives by more clearly defining the future needs of
various Airport stakeholders and maintaining focus
throughout the planning effort.
Master Plan
I. Overview
A. Vision and Mission Statements
B. Core Services
II. Operational Plan
A. Environment
– Clients
– Challenges
– Resources
•
-
B. Action Plan
Strategic Goals
Strategies
Key Performance Measures
Elements
• One of the key elements of a business plan is a
SWOT (strengths, weaknesses, opportunities
and threats) analysis.
• Utilising outside resources to either
independently prepare or work with internal
staff can improve the final product.
swot analysis
• Strengths: characteristics of the business or
team that give it an advantage over others in
the industry.
• Weaknesses: are characteristics that place the
firm at a disadvantage relative to others.
• Opportunities: external chances to make
greater sales or profits in the environment.
• Threats: external elements in the environment
that could cause trouble for the business.
Strengths:
• One airport operator;
• support through national identity, position
and customer demand;
• capacity, infrastructure and hinterland which
allow for growth;
• strong charter market and expanding
LCC/business routes;
………
Weaknesses
• future of the market provision;
• demand as a destination market;
• surface leakage and poor access infrastructure
….
Opportunities:
• route provision to meet local demand;
• congestion and growth limits at competing
airports;
• regeneration of hinterland driving demand
and improving access.
………..
Threats
• the gravity effect of other airports;
• market dominance of airlines operating from
competing airports.
……
Clients
• The Traveling and Shipping Public
• Commercial Passenger, Commuter Passenger,
and Cargo Carriers
• General Aviation Aircraft Operators
• Airport Concessionaires and Tenants
• Surrounding Communities
• The Business Community
• Bondholders
Vision
• Example: “To provide an achievable, flexible
and fiscally responsible development plan that
will help ensure that Airport can
accommodate future activity levels, further its
position as an international gateway and
world-class hub airport, and support aviation
related economic development.”
Goals (example)
• Maintain a safe and secure operating environment.
• Efficiently accommodate regional, national and global demand for
air service.
• Expand the role of the airport as an international gateway to and
from the region.
• Provide a seamless transportation system for moving users and
goods through the region and across the world.
• Be a generator of jobs, air service, and economic development by
enabling the airlines and other tenants to effectively offer their
products.
• Be a willing and active partner in aviation related development in
and around the airport that stimulates economic and commercial
development to benefit the region and enhance nonairline
revenue.
Objectives
•
•
•
•
•
•
•
•
General: Overarching policy and planning objectives that reflect the overall desires of the
Airport Development Program.
Airside: Policy and planning objectives specifically focused on the development of the
airside facilities including runways, taxiways and other aircraft operational areas.
Terminal: Policy and planning objectives for enhancing the passenger terminal facilities
and airline areas including passenger processing, security, and passenger amenities.
Landside: Policy and planning objectives for the development of landside facilities such as
access, curb frontage, parking, and rental car facilities.
Financial: Policy and planning objectives that reflect the airport’s desire to be fiscally
responsible in its long range planning.
Security: Policy and planning objectives that reflect the airport’s commitment to the safety
and protection of airport users and employees.
Commercial and Economic Development: Policy and planning objectives for the
development of airport-owned properties to spur economic growth in aviation and nonaviation related areas.
Operations and Maintenance: Policy and planning objectives that pertain to the operation
of the airport buildings (structures) and grounds.
Sourse: http://www.metroairport.com/programs/DTWMasterPlan/MasterPlanVisionGoalsObjectives.pdf
2. Inventory of existing conditions
• Typical broad categories of information collected include the following:
the history of the airport; physical facilities on the airport; the regional
setting of the airport and surrounding land uses; the environmental
setting of the airport; socio-economic and demographic data for the
airport service area; historical aviation activity; and airport business
affairs.
• The collected information usually is categorized in sections that discuss
airfield and airspace configurations; passenger, cargo and general aviation
facilities; air navigation aids; auto access and parking; and support
facilities. The inventory section also can include a description of the
airport’s regional land use, an environmental overview, and a brief
financial review as appropriate.
3. Forecast of demand
• The forecast level of activity established for an airport with passenger and
cargo service includes the number of expected passengers to be
transported and the amount (weight) of air cargo carried by a specific
“critical” aircraft. In defining general aviation and corporate aviation
needs, forecasts of aircraft operations (take-offs and landings), annual
instrument approaches conducted, fueling needs and expectations on
aircraft maintenance and storage requirements is documented.
• Forecast activities are usually defined in short-, medium- and long-term
periods. In addition certain forecasts of passengers and aircraft
operations may need to be refined to quantify forecasts during peak
operational periods. Some of the factors that influence forecasts include
socio-economic data, regional demographic characteristics, geographic
attributes (distance, climate) and other external factors.
4. Demand and capacity analysis and
facility requrement
• Compares the projected future demand with the existing capacity
of each airport component and identifies the facility
requirements necessary to accommodate any surplus demand.
• The facility requirements element of the airport master plan
summarizes a technical analysis of the aviation and allied facilities
that will be required to accommodate the aeronautical activity
(passenger, air cargo and general aviation/corporate) identified in
the aviation forecasts element.
• These facilities may include runways, taxiways, aprons, passenger
terminals, air cargo facilities, navigation aids, airport traffic
control towers and security, safety and maintenance facilities.
5. Alternatives development
Identifies, refines and evaluates a range of alternatives for
accommodating the facility requirements.
The alternatives analysis of a master plan brings together complex
elements of the planning process to identify and study alternatives that
meet the needs of airport users. Elements:
• Identification of alternative ways to address previously identified facility
requirements.
• Evaluation of the alternatives, individually and collectively, so that
planners gain a thorough understanding of the strengths, weaknesses, and
other implications of each.
• Selection of the recommended alternative.
The alternatives analysis also must consider environmental issues that
may arise from a recommended alternative. Early review of potential
environmental impacts of all alternatives considered is prudent.
7. Implementation plan
• Provides a comprehensive plan for the implementation of the
Preferred Development Plan, including project definition,
construction sequence and timeline, cost estimates, and plan
of finance.
8. Environmental overview
Provides an overview of the anticipated environmental
impacts associated with the Preferred Development
Plan in order to understand their severity and to help
expedite subsequent environmental processing.
Environment
• We must closely manage the airport’s noise impact.
• We need to be environmentally responsible in
developing the airport master plan.
• Sustainability should be a top priority.
9. Airport plans package
• Documents existing as well as planned
modifications to airport facilities through a
series of electronic drawings, most notably the
Airport Layout Plan (ALP), in accordance with
CAA standards for content and organization.
10. Stakeholder and public
involvement
• Documents the coordination efforts that occur
among the various stakeholders throughout
the study.
Alternatevs (J.H. Kwakkel)
• Dynamic Strategic Planning-is an approach for making flexible
plans that can be easily adjusted over time to the actual
situation and conditions. In this way, bad situations can be
avoided, and opportunities can be seized. The resulting
dynamic strategic plan defines a flexible development over
several stages; it commits only to a first stage, and then
proposes different developments in the second and
subsequent stages. DSP can be compared to a chess game;
players think multiple moves ahead, but only commit to one
move at a time, retaining the flexibility to adjust to how the
game unfolds (de Neufville, 2000).
•
•
•
•
•
•
•
•
I Modeling: this activity should result in one or more models of the technical system and its
performance;
II Optimization: this activity should result in an overview of different cost-effective means for
achieving specified levels of results;
III Estimation of Probabilities: since the performance of a system in the future cannot be
forecasted, it is necessary to estimate the range of values for key system parameters, and the
likely probability distributions for these parameters;
IV Decision Analysis: by combining the results from the previous three activities, a Decision
Analysis for the set of choices can be carried out;
Sensitivity Analysis: this activity should make sure that the outcome of the decision analysis
is robust with regard to changes in parameter values;
V Evaluation of Real Options: this activity should focus on identifying cost-effective real
options that increase the flexibility of the plan. These can then be inserted into the decision
analysis;
VI Analysis of Implicit Negotiation: the implementation of a plan depends to a large extent on
the support of relevant stakeholders. This activity aims at analyzing the stakeholders and
their pos-ible behavior. The results are to be taken into account when thinking about the
implementation of the plan that is developed through activities I-VI
VII Analysis of Implicit Negotiation: Finally, an effective strategy for the development and
implementation of the technology policy must be defined. This requires that we look at the
possible strategies identified in the previous steps from the point of view of the different key
stakeholders in the process.
Adaptive Policy-Making
• APM is a generic approach for planning under severe
uncertainty. It recognizes that, in a rapidly changing world,
fixed static policies are likely to fail. Over time, however, we
learn, thus reducing the uncertainty, in light of what we have
to do. To plan effectively in such a changing world, therefore,
one should plan adaptively, and allow for this learning. APM
can be compared to guiding a ship. The destination is set at
the start of the journey, but the route (the policy) adapts to
the changing circumstances. If the APM process can be split
into two phases: a thinking phase, during which the adaptive
policy is developed, and an implementation phase, during
which the policy is implemented, its performance monitored,
and the policy adapted, if necessary.
More specifically, the process consists
of four steps
- Stage Setting: The important objectives, constraints, and policy options are identified during this
step. Based on these, a definition of success of the adaptive policy can be given, which is
needed in order to be able to decide when the policy needs to be changed.
- Assembling Basic Policy: During this step, the basic policy is assembled by specifying promising
policies and identifying success factors for these policies.
- Specifying Rest of Policy: This step focuses on specifying the remainder of the policy by (i)
identifying the vulnerabilities of the policy, and specify mitigating and hedging actions that
should be taken at the time when the policy is implemented in order to prevent its failure,
and (ii) translating the success factors into signposts that should be monitored in order to
guide the policy over time in case conditions change, specifying triggers that should lead to
the implementation of defensive actions (to defend the basic policy against a changing
context) or corrective actions (to adapt the basic policy to the changing context), or would
lead to a complete reassessment of the policy.
- Implementation Phase: During this phase, events unfold, the signposts are monitored, and
defensive or corrective actions are taken if necessary. The implemented policy remains active
as long as the signposts signify that the policy is achieving its intended outcome. Otherwise, a
reassessment is triggered, which reverts to step 1 of the policy-making process (but with a
great deal more knowledge of the situation)
Characteristics
Master Planning
Dynamic Strategic
Planning
Adaptive Policy Making
Focus
Blue print design of
future airport.
Flexibility in the plan so
changes are possible if
necessary.
Vision of a future airport,
realization of which is prepared
by identifying different routes to
realize this vision.
Treatment of
uncertainty
Only demand
uncertainties are
considered and reduced
through demand
forecasting, other
uncertainties are ignored
Key uncertainties
that can influence the
performance of the plan are
identified and treated
quantitatively through
subjective probabilities
Key uncertainties
that can influence the
performance of the plan
are identified and treated
qualitatively
Response to
unexpected
developments
Unexpected events are
treated in an ad hoc
manner
A dynamic strategic plan
contains pre-specified
actions in the form of real options,
which can be exercised if this will
contribute to the performance of
the plan
An adaptive plan
contains pre –specified actions
(e.g defensive and corrective
actions) that are triggered when
unexpected events lead to
unwanted outcomes
Involvement of
stakeholders
Limited stakeholder
involvement, which can
lead to serious
opposition
Stakeholders are involved after the
dynamic plan has been
designed (i.e. a designanddefend approach)
No clear specification of
how stakeholders should
be involved.
Monitoring of
outcomes
Limited monitoring,
mainly on an ex-post
basis.
Outcomes would be
monitored as part of the decision
making process about when to cash
the Real Option. The outcomes to
be monitored are those that
influence the value of the Real
Options.
Outcomes would be
monitored as part of the
implementation process.
The outcomes to be monitored
are based upon the objectives of
the policy
MASTER PLAN VS BUSINESS PLAN
• While a master plan is important in assessing infrastructure needs, a
business plan is a communications, management and planning tool
for an airport. Master plans (as well as airport management) typically
do an inadequate job of assessing how capital projects might impact
an airport’s profitability, the competitive market and the support
required from the organisation. Master plans tend to focus on an ‘if
you build it, they will come’ mentality. Business plans should address
the issue of ‘if we build it, how are we going to pay to maintain it’. As
such, at a minimum, it is essential for a master plan to include a
strategic business plan as one of its elements. It is also a working
document for airport administration that can (and should) be
reviewed and updated as the airport evolves and is faced with
changing market and industry conditions, just like the master plan.
An airport business plan
provides the following critical functions
•
•
•
•
•
•
•
researches, clarifies and focuses the development and prospectus of a business
idea;
offers benchmarks to measure and review performance;
provides strategic measures to counter business impacts, such as competition,
tenant turnover or bankruptcy;
provides stability to deal with management changes and transitions;
serves as a basis for guidelines and for dialogue with board members, business
partners and key employees;
helps an airport avoid making the same mistakes over again;
assists in recognising and seizing upon an airport’s opportunities.
Source: MICHAEL A. HODGES, 2008, Journal of Airport Management
Historic and new priorities in the
airport industry
Source: NAZARENO VENTOLA, 2010., Journal of Airport Management
The airport industry is experiencing a ‘perfect storm’, with the
business environment becoming increasingly unstable.
Source: NAZARENO VENTOLA, 2010., Journal of Airport Management
Vicious circle in airport capex
development
Source: NAZARENO VENTOLA, 2010., Journal of Airport Management
Arriving at net cost to LCC
Source: NAZARENO VENTOLA, 2010., Journal of Airport Management